**Executive Summary**
This document is a response to Lok Sabha Unstarred Question No. 618, answered on December 3, 2025. It addresses the rationalization of royalty rates for critical minerals to reduce import dependence. The Central Government has rationalized royalty rates of critical minerals since 2022 and has launched the sixth tranche of auction of critical and strategic minerals on September 16, 2025, for 23 mineral blocks.
**Key Points / Main Content**
* **Rationalization of Royalty Rates:**
* The Central Government has rationalized royalty rates of critical minerals to reduce import dependence.
* Details of royalty rates of critical minerals rationalized since 2022 are in Annexure.
* **Distribution of Royalties:**
* The entire royalty from mining activities accrues to the respective State Government.
* **Auction of Mineral Blocks:**
* The rationalization of royalty rates of critical minerals will promote their auction.
* The Central Government has successfully auctioned 34 mineral blocks of critical and strategic minerals.
* The Central Government launched the sixth tranche of auction of critical and strategic minerals on September 16, 2025, for 23 mineral blocks, including Rubidium and Zirconium.
* **Royalty Rates for Specific Minerals (Annexure):**
* Specific royalty rates are defined for the following minerals, and depend on whether they are primary product or a by-product: Beryllium, Cadmium, Cobalt, Gallium, Indium, Rhenium, Selenium, Tantalum, Tellurium, Titanium, Tungsten, Vanadium, Lithium, Niobium, Rare Earth Elements, Glauconite and Potash, Molybdenum, Platinum Group Metals (Platinum Palladium, Rhodium, Iridium and Ruthenium, Osmium), Graphite, Zirconium.
**Impact Analysis**
**State Governments**
* **Impact:** Receives royalties from mining activities.
* **Action Required:** Potentially need to budget and allocate resources based on revised royalty revenue streams.
**Central Government**
* **Impact:** Successful auction of critical and strategic minerals reduces import dependence and revenue from the auction.
* **Action Required:** Successful auction of mineral blocks of critical and strategic minerals.
**Mining Companies**
* **Impact:** Adjustment to new royalty rates affecting profitability.
* **Action Required:** Compliance with new royalty rates and participation in auctions.
Key Entities Referenced
Rationalisation of Royalty Rates of Critical Minerals: The primary subject of the document: an initiative to adjust royalty rates to promote domestic mining and reduce import dependence.
Ministry of Mines: The Indian governmental body responsible for the administration of mines and minerals, and the entity providing the answer to the parliamentary question.
Lok Sabha: The lower house of the Indian Parliament, where the question regarding the rationalization of royalty rates was raised.
Critical Minerals: Minerals whose supply is at risk and are essential for economic or strategic purposes.
GOVERNMENT OF INDIA
MINISTRY OF MINES
LOK SABHA
UNSTARRED QUESTION NO. 618
ANSWERED ON 03.12.2025
RATIONALISATION OF ROYALTY RATES OF CRITICAL MINERALS
618. PROF. SOUGATA RAY:
Will the Minister of MINES be pleased to state:
(a) whether the Government has taken any steps to rationalise the royalty rates of
critical minerals to reduce import dependence;
(b) if so, the details of new royalty rates of various critical minerals;
(c) the details of ratio of royalties among the Union and States of such minerals;
(d) whether the new rationalised rates will help to promote the auction of mineral blocks
of critical minerals like caesium, rubidium and zirconium; and
(e) if so, the details thereof?
ANSWER
THE MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) & (b): Yes, Sir. The Central Government has rationalized rates of royalty of critical
minerals. Details of royalty rates of critical minerals rationalized since 2022 are at
Annexure.
(c): The entire royalty from mining activities accrues to the respective State
Government.
(d) & (e): Yes, Sir. The rationalization of royalty rates of critical minerals will promote
their auction. Till date, the Central Government has successfully auctioned 34 mineral
blocks of critical and strategic minerals. Further, the Central Government has launched
the sixth tranche of auction of critical and strategic minerals on 16.09.2025 for 23
mineral blocks including blocks of minerals Rubidium and Zirconium.
*****Annexure
Referred in reply to part (a) & (b) of Lok Sabha Unstarred Question No. 618
Sl. No. Minerals Rates of Royalty
1. Beryllium Two per cent. of the average sale price of Beryllium
metal chargeable on the Beryllium metal contained
in the ore produced.
2. Cadmium:
Four per cent. of the average sale price of Cadmium
(i) Primary metal chargeable on the Cadmium metal contained
in the ore produced.
(ii) By-product Two per cent. of the average sale price of Cadmium
metal chargeable on the by-product Cadmium
metal contained in the ore produced.
3. Cobalt:
(i) Primary Four per cent. of the average sale price of Cobalt
metal chargeable on the Cobalt metal contained in
the ore produced.
(ii) By-product Two per cent. of the average sale price of Cobalt
metal chargeable on the by-product Cobalt metal
contained in the ore produced.
4. Gallium:
(i) Primary Four per cent. of the average sale price of Gallium
metal chargeable on the Gallium metal contained in
the ore produced.
(ii) By-product Two per cent. of the average sale price of Gallium
metal chargeable on the by-product Gallium metal
contained in the ore produced.
5. Indium Two per cent. of the average sale price of Indium
metal chargeable on the Indium metal contained in
the ore produced.
6. Rhenium Two per cent. of the average sale price of Rhenium
metal chargeable on the Rhenium metal contained
in the ore produced.
7. Selenium:
(i) Primary Four per cent. of the average sale price of Selenium
metal chargeable on the Selenium metal contained
in the ore produced.
(ii) By-product Two per cent. of the average sale price of Selenium
metal chargeable on the by-product Selenium metal
contained in the ore produced.8. Tantalum (produced from
ores other than
Columbite-tantalite):
(i) Primary Four per cent. of the average sale price of Tantalum
metal chargeable on the Tantalum metal contained
in the ore produced.
(ii) By-product Two per cent. of the average sale price of Tantalum
metal chargeable on the by-product Tantalum metal
contained in the ore produced.
9. Tellurium Two per cent. of the average sale price of Tellurium
metal chargeable on the Tellurium metal contained
in the ore produced.
10. Titanium (produced from
ores other than Brown
Ilmenite (Leucoxene),
Ilmenite and Rutile
occurring in Beach Sand
Minerals found in teri or
beach sands):
(i) Primary Four per cent. of the average sale price of Titanium
metal chargeable on the Titanium metal contained
in the ore produced.
(ii) By-product Two per cent. of the average sale price of Titanium
metal chargeable on the by-product Titanium metal
contained in the ore produced.
11. Tungsten: Three per cent. of the average sale price of
Tungsten Trioxide (WO ) on contained WO per
3 3
tonne of ore on pro rata basis.
12. Vanadium:
(i) Primary Four per cent. of the average sale price of
Vanadium Pentoxide on contained V O per tonne
2 5
of ore on pro rata basis.
(ii) By-product Two per cent. of the average sale price of
Vanadium Pentoxide on contained V O per tonne
2 5
of ore on pro rata basis.
13. Lithium: Three per cent. of London Metal Exchange price
chargeable on the Lithium metal in the ore
produced.
14. Niobium:
(i) Primary (produced Three per cent. of average sale price of Niobium
from ores other than metal chargeable on the Niobium metal contained
Columbite- tantalite) in the ore produced.(ii) By-product (produced Three per cent. of average sale price of Niobium
from ores other than metal chargeable on the by-product Niobium metal
Columbite-tantalite) contained in the ore produced.
15. Rare Earth Elements One per cent. of average sale price of Rare Earth
(produced from ores Oxide (REO) chargeable on the Rare Earth Oxide
other than Monazite contained in the ore produced.
occurring in beach sand
minerals):
16. Glauconite and Potash Two point five per cent. of price for Muriate of
Potash published by the Government of India,
Ministry of Chemicals and Fertilizers, Department of
Fertilizers chargeable on the contained K2O in ore
produced for those dispatched for making such
Muriate of Potash.
17. Molybdenum Seven point five per cent. of London Metal
Exchange Molybdenum metal price chargeable on
the contained Molybdenum metal in ore produced.
18. Platinum Group of
Metals:
Four per cent. of London Bullion Market Association
(i) Platinum and price chargeable on the Platinum and Palladium
Palladium; metals in ore produced;
Four per cent. of Johnson Matthey Precious Metals
Management price chargeable on the Rhodium,
(ii) Rhodium, Iridium and Iridium and Ruthenium metals in ore produced
Ruthenium;
Four per cent. of Osmium-Preis.com price
chargeable on the Osmium metal in ore produced.
(iii) Osmium:
19. Graphite:
(i) With eighty per cent. or Two per cent. of average sale price on ad valorem
more fixed carbon basis.
(ii) With less than eighty Four per cent. of average sale price on ad valorem
per cent. Fixed carbon basis.
20. Zirconium One per cent. of the average sale price of Zirconium
metal chargeable on the Zirconium metal contained
in the ore produced.